Marks & Spencer yesterday revealed that chief executive Stuart Rose earned a pay-package worth almost #2.5 million last year after driving the transformation of the retailer.

The Mvumi Secondary School in Tanzania is #519,000 richer after Mr Rose kept his promise to donate gains on his stock options if the retailer's shares topped 400 pence - the price tycoon Philip Green bid for M&S in 2004.

Details of the donation by Mr Rose, who spent part of his childhood in Tanzania, were revealed in M&S's 2006 annual report and accounts, which were published yesterday.

They revealed he received total emoluments of #2.31 million, up nine per cent on the previous year. His salary increased #100,000 to #950,000 and he also received benefits of #198,000 and a bonus of #1.23 million.

The bumper pay deal came after M&S posted a 35 per cent rise in pretax profits to #751.4 million in the year to April 1.

Mr Rose could be handed more shares worth as much as #1.9 million next month when M&S reveals further bonuses, this time under its performance share plan which offers payments worth up to 200 per cent of salary.

Mr Rose could earn even more next year following his basic salary hike in January.

And M&S proposed that the maximum bonus payment should be increased from 150 per cent to 250 per cent of salary while payments under the performance share plan should go up from a top rate of 200 per cent to 400 per cent in "exceptional cases".

M&S said bonuses were paid if directors met certain targets such as profits and earnings per share.

The City has showered praise on Mr Rose since he took over at M&S two years ago when the store was suffering from falling sales and profits.

M&S shares have soared from as low as 320p to 632p last month.

The rising share price mirrored improving fortunes in the shops, which saw M&S record its best like-for-like sales figures for three years earlier this year.

Unveiling Mr Rose's pay and bonus in its annual report, M&S said: "This year the profit before tax targets have been delivered above target and represent a significant improvement both on the reported profits for 2004 to 2005 and against market expectations at the beginning of the financial year."